Black Friday Sales Rise 6.6% to Record, Are Keynesians Fooled Once Again?

Black Friday sales increased 6.6 percent over the same day last year. This represents $11.40 billion in retail purchases and the biggest dollar amount ever spent during the day. Retail foot-traffic rose accordingly, increasing by 5.1 percent over Black Friday 2010, reports ShopperTrak.

Black Friday’s strong showing came on the heels of a very good November for retailers. Sales were up 3.6 percent during the week of Nov. 12. They also were up 3.8 percent during the week of Nov. 19, the week before Black Friday

Have Keynesian economists missed the Fed manipulated new boom, the way they missed the Fed created previous boom-bust cycle? Very likely. They have no sound theory to understand changes in the cycle. They just watch "demand", thinking it somehow changes without explanation. The fact of the matter is, and only Austrian Business Cycle Theory explains this, that the changes in demand are a direct result of the Federal Reserve manipulating the money supply and distorting the structure of the economy. Recent Fed money printing is creating a new manipulated boom cycle. This manipulated boom will come with massive price inflation, which will make fools out of economists like Paul Krugman and Fed chairman Ben Bernanke who see no signs of the developing price inflation.

Yes, soon we will be able to add Krugman and Bernanke, next to the names of McCarthy and Peach and Irving Fisher, as economists who used whacked out equations, based on faulty methodology, to make some of the worst forecasts known to mankind.